What are the Different Real Estate Deductions?

United States tax law provides for various real estate deductions. In general, there are more real estate deductions available to a homeowner than to someone who rents his residence. One of the biggest deductions that can be taken is for mortgage interest. Home repairs often apply too, as well as the interest on a second mortgage taken out to pay for the repairs. When a tax return is being prepared, real estate deductions can add up significantly, reducing one’s tax liability and potentially saving a large some of money in this way. As mentioned, the best known of all real estate deductions is for the payment of mortgage interest. A portion of each mortgage payment comes from the interest that has accrued on the loan within the past month. This amount can be added up and deducted from a homeowner’s tax liability, providing significant savings, especially for new homeowners. The longer you pay off a mortgage, however, the less valuable the deduction will be, because as the loan ...  more